Featured Product

    HKMA Implementation Guidance on Securitization Framework for Banks

    March 26, 2018

    HKMA published a set of questions and answers (Q&A) on the revised securitization framework under the Banking (Capital) Rules (BCR). This set of Q&A supersedes the guidance on securitization set out in pages 52 to 66 of the revised Questions and Answers on BCR, which were issued on December 31, 2014.

    These Q&A were built on the existing Q&A, with modifications to align with the amendments made to Part 7 of the BCR and to clarify the policy intent in respect of specific issues. New guidance is provided on the notification requirement under section 230(3), (4), and (5) in Part 7 and the assessment of significant credit risk transfer for obtaining capital relief for the underlying exposures of a securitization transaction under the BCR. HKMA responses to the industry during the consultations conducted in 2017 on the implementation of the revised securitization framework in Hong Kong had mentioned that supplementary guidance will be provided to assist authorized institutions in interpreting Part 7 of BCR (as amended to implement the framework) at a more detailed level in a number of specific areas. This supplementary guidance is now being provided in the form of this set of Q&A.

    The Q&A have been drafted, as far as possible, in simple non-legal language to facilitate consistent interpretation and application of the capital or disclosure requirements. They are, however, explanatory and supplementary in nature and do not seek to replace any requirements in the BCR. Also, the Q&A are inevitably general in scope and do not take into account the particular circumstances of individual authorized institutions. 

    Keywords: Asia Pacific, Hong Kong, Banking, Securitization, Q&A, Banking Capital Rules, HKMA

    Related Articles
    News

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.

    September 10, 2020 WebPage Regulatory News
    News

    MAS Issues Guidelines to Promote Senior Management Accountability

    MAS published the guidelines on individual accountability and conduct at financial institutions.

    September 10, 2020 WebPage Regulatory News
    News

    APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans

    APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.

    September 09, 2020 WebPage Regulatory News
    News

    SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks

    SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.

    September 09, 2020 WebPage Regulatory News
    News

    FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms

    FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.

    September 09, 2020 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in September 2020

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.

    September 08, 2020 WebPage Regulatory News
    News

    OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management

    OSFI published the key findings of a study on third-party risk management.

    September 08, 2020 WebPage Regulatory News
    News

    FSB Extends Implementation Timeline for Framework on SFTs

    FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.

    September 07, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5796